Montana Real Estate Salesperson Exam — All Questions

When a Montana salesperson receives an earnest-money deposit, the funds must be:

• a.Delivered promptly to the supervising broker to be held in the broker's trust account✓
• b.Held in cash by the salesperson until closing
• c.Deposited into the salesperson's personal account
• d.Sent directly to the Board of Realty Regulation

Earnest money and other client funds must be handled through the supervising broker's trust (escrow) account. A salesperson who receives funds must deliver them promptly to the broker, who must keep trust money separate from personal and business funds. Mishandling trust money is one of the most serious violations of Montana license law.

A Montana broker who moves the brokerage office must notify the department:

• a.before the move or within 10 days after, with the new address✓
• b.within 30 days after the move, by certified mail to the board in Helena
• c.only when the move crosses into a different Montana county
• d.at the broker's next scheduled license renewal deadline

A Montana broker keeps a designated physical address with the license displayed there. On removal from that address the broker notifies the department before the move or within 10 days after it, designating the new physical address and paying the required fee. Cite: Mont. Code Ann. 37-51-308(1), (3).

Montana law on a salesperson's supervision provides that a salesperson:

• a.chooses a supervising broker only when handling trust funds
• b.may be under contract to only one supervising broker at a time✓
• c.may work for two supervising brokers in two different cities
• d.may serve any broker who pays the salesperson a referral fee

A Montana salesperson may not be associated with, be under contract to, or perform services for more than one supervising broker, except on the temporary basis the statute and board rule allow. Only one salesperson license is in effect at a time. Cite: Mont. Code Ann. 37-51-309(1), (5).

A Montana salesperson leaves a firm with no new supervising broker lined up. That license:

• a.transfers automatically to the firm's next most senior broker
• b.is revoked and must be earned again by passing the state exam
• c.stays active for a 30-day grace period after the departure
• d.goes on inactive status automatically, with no fee charged✓

When a Montana salesperson leaves a supervising broker without a successor who has accepted supervision, the salesperson notifies the department promptly in writing and the license is automatically placed on inactive status. No fee may be charged, and the salesperson may not practice while inactive. Cite: Mont. Code Ann. 37-51-309(3).

Before a Montana salesperson sells property the salesperson owns, the salesperson must:

• a.list the property with the supervising broker's own firm
• b.notify the Board of Realty Regulation of it in writing
• c.get the supervising broker's written approval of the price
• d.disclose in writing that this is a for-sale-by-owner deal✓

Montana lets a salesperson handle for-sale-by-owner personal transactions outside the firm, but the salesperson must first disclose in writing to the other party that the deal is a personal transaction not involving the supervising broker or firm. Cite: Mont. Code Ann. 37-51-309(6)(c).

Under the Montana board's trust account rule, money belonging to others must be deposited:

• a.within five business days after the offer is accepted
• b.before the end of the next banking day after receipt
• c.within three business days, unless the parties agree✓
• d.within 72 hours of the broker's receipt of the funds

The trust account rule the Board of Realty Regulation adopted effective February 21, 2026 gives brokers three business days to deposit monies belonging to others, unless the parties agree otherwise. It replaced the repealed rule on trust account requirements. Cite: Mont. Admin. R. 24.210.427(4)(d).

How much of a Montana broker's own money may sit in the trust account?

• a.up to $1,000, counting interest accrued to the broker✓
• b.none at all, because any personal funds are commingling
• c.any amount, so long as the records identify it clearly
• d.up to $5,000, to cover the trust account's bank charges

Montana's rule permits a broker to deposit and hold up to $1,000 of personal funds, including interest accrued to the broker, and to use those funds for trust account bank charges, related maintenance expenses, and money due and payable to the broker. Cite: Mont. Admin. R. 24.210.427(6).

Money in a Montana trust account that has become due and payable to the broker must be withdrawn:

• a.only after the client signs a written release of it
• b.within ten business days once it is due and payable✓
• c.within 30 days after the transaction has finally closed
• d.at the time of the next monthly account reconciliation

Montana's trust account rule sets an outside limit on how long the broker's own earned money may stay in the account: money due the broker must be withdrawn within ten business days once it is due and payable. Cite: Mont. Admin. R. 24.210.427(6)(b).

The Montana trust account rule requires the account to be:

• a.insured in a Montana institution and reconciled monthly✓
• b.held in a federally chartered bank outside the state
• c.audited each year by an independent public accountant
• d.reconciled quarterly and reported to the board yearly

Montana requires trust accounts to be liquid, readily accessible, insured in Montana financial institutions, identified as trust accounts, and reconciled each month that has activity. Cite: Mont. Admin. R. 24.210.427(2).

Which handling of Montana trust funds does the board's rule forbid?

• a.an interest-bearing account with the interest paid to the depositing client
• b.maintaining more than one separately identified trust account
• c.placing the funds in a sweep account or a certificate of deposit✓
• d.delegating the account's maintenance to another licensed broker

Montana bars trust funds from sweep accounts and from investment in certificates of deposit, repurchase agreements, or any other method that puts the funds at risk. Interest-bearing accounts, multiple accounts, and delegation to another licensed broker are all allowed. Cite: Mont. Admin. R. 24.210.427(3), (4), (5).

When may a Montana broker take part of the earnest money as commission?

• a.as soon as the seller accepts the buyer's offer in writing
• b.whenever the listing says the deposit is nonrefundable
• c.after the transaction closes or is terminated✓
• d.at any point, if the money moves to the operating account

Montana's rule says a broker is not entitled to any earnest money or other money paid in connection with a transaction as part or all of the commission until the transaction has been closed or terminated, and any split of forfeited earnest money with the seller must rest on a written agreement. Cite: Mont. Admin. R. 24.210.427(11).

A Montana salesperson negotiates a listing agreement. Under the board's supervision rule it is not valid until:

• a.the board issues a listing registration number for it
• b.the seller delivers a completed property condition sheet
• c.the supervising broker has reviewed, signed, and dated it✓
• d.it is entered into an approved multiple listing service

The salesperson supervision rule adopted effective February 21, 2026 provides that a listing agreement negotiated by a salesperson is not valid until it is reviewed, signed, and dated by the supervising broker. Cite: Mont. Admin. R. 24.210.607(3).

A Montana supervising broker temporarily transfers a salesperson to another supervising broker. That transfer:

• a.must be filed with the board 30 days before it starts
• b.needs the salesperson's consent on a board-issued form
• c.may not run beyond 60 days in any 12-month period✓
• d.ends the salesperson's authority to write any offers

Montana's supervision rule caps a temporary transfer at 60 days in any 12-month period absent a board extension for good cause, and the supervising broker must give the board a copy of the transfer notice within three business days after the transfer begins or face a late fee. Cite: Mont. Admin. R. 24.210.607(2)(b), (2)(d).